One Week to DORA: Is Luxembourg’s Financial Sector Ready?

Dora countdown

With just one week remaining until the Digital Operational Resilience Act (DORA) becomes enforceable on January 17, 2025, Luxembourg’s financial sector is making significant strides toward compliance. A recent survey by the Commission de Surveillance du Secteur Financier (CSSF) indicates that approximately 90% of financial entities have completed their DORA gap analyses, reflecting a strong commitment to meeting the new regulatory standards.

https://www.cssf.lu/en/2024/10/results-of-the-dora-readiness-survey-conducted-in-september-2024/

However, challenges persist, particularly in the areas of third-party risk management and digital operational resilience testing. Many institutions are still in the process of establishing comprehensive frameworks to oversee their ICT third-party service providers, a critical component of DORA compliance. Additionally, the implementation of advanced resilience testing mechanisms remains an area requiring further development.

https://www.pwc.com/gx/en/issues/risk-regulation/DORA-10-key-challenges-of-a-successful-compliance-journey.html

In comparison to other EU countries, Luxembourg’s proactive approach, guided by the CSSF’s initiatives, positions it favorably. Nonetheless, the financial sector must intensify efforts in the following areas to ensure full compliance:

  • Enhancing Third-Party Risk Management: Developing robust oversight and contractual agreements with ICT service providers to meet DORA’s stringent requirements.
  • Implementing Comprehensive Resilience Testing: Establishing and conducting thorough digital operational resilience tests to identify and mitigate potential vulnerabilities.
  • Strengthening Incident Reporting Mechanisms: Ensuring efficient and accurate reporting frameworks for ICT-related incidents, as mandated by DORA.

By addressing these critical areas, Luxembourg’s financial institutions can achieve full compliance with DORA, thereby enhancing their digital operational resilience and maintaining the integrity of the financial system.

For more detailed information and guidance, financial entities are encouraged to consult the official publications and resources provided by the CSSF and EBA.

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